NEW YORK, Aug. 26, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of NIO, Inc. (NYSE: NIO) and Bed Bath & Beyond, Inc. (NASDAQ: BBBY). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
NIO, Inc. (NYSE: NIO)
Class Period: March 1, 2021 – July 11, 2022
Lead Plaintiff Deadline: October 24, 2022
On June 28, 2022, Grizzly Research published a report alleging, among other things, that NIO inflated its net income by about 95% through sales to a related party, Wuhan Weineng Battery Asset Co. (“Weineng”).
On this news, the Company’s American Depositary Shares (“ADSs” or “shares”) fell $0.59, or 2.5%, to close at $22.36 per share on June 28, 2022, on unusually heavy trading volume.
Then, on July 11, 2022, NIO announced that it formed a special committee to oversee an investigation into the allegations in the Grizzly Research report.
On this news, the Company’s shares fell $2.03, or 8.9% to close at $20.57 per share on July 11, 2022, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that NIO pulled forward revenue by selling batteries to a related party, which owned the batteries and managed users’ subscriptions; (2) that, through the related party, NIO also recognized enormous depreciation savings; (3) that, as a result of the foregoing, the Company’s revenue and net loss were overstated; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the NIO class action go to: https://bespc.com/cases/NIO
Bed Bath & Beyond, Inc. (NASDAQ: BBBY)
Class Period: March 25, 2022 – August 18, 2022
Lead Plaintiff Deadline: October 24, 2022
On March 6, 2022, through his investment firm RC Ventures LLC, Ryan Cohen, the billionaire co-founder of Chewy Inc. who also serves as chairman of GameStop Corp., sent a letter to Bed Bath & Beyond’s board which announced that he owned a 9.8% stake in Bed Bath & Beyond and in which he criticized the Company’s management.
On this news Bed Bath & Beyond stock to close 34% higher on March 7, 2022 compared to its close on March 4, 2022, the previous trading day, on extremely heavy trading volume.
On March 25, 2022, Bed Bath & Beyond added three new directors appointed by Ryan Cohen’s investment firm, RC Ventures LLC.
On August 15, 2022, Ryan Cohen, through his investment firm RC Ventures LLC, announced in an SEC filing purchases of over one million January 2023 call options with exercise prices at $60, $75, and $80—significantly higher than Bed Bath & Beyond shares were trading
On this news, Bed Bath & Beyond stock closed 29% higher on August 16, 2022 compared to its close on August 15, 2022, on extremely heavy trading volume.
Then, on August 18, 2022, Ryan Cohen, through his investment firm RC Ventures LLC, announced that he would sell his entire stake in Bed Bath & Beyond. Also on August 18, 2022 Bloomberg published an article entitled “Bed Bath & Beyond Taps Kirkland & Ellis for Help Addressing Debt Load” which revealed the Company hired a law firm for help with its debt.
On this news, Bed Bath & Beyond shares fell $4.53 per share, or 19%, to close at $18.55 per share on August 18, 2022, on extremely heavy trading volume. Bed Bath & Beyond shares continued to drop on August 19, 2022, falling $7.52 per share, or 40%, from its August 18, 2022 close, to close at $11.03 per share, on extremely heavy trading volume.
On August 19, 2022, Bed Bath & Beyond stock plunged to a new low of $9.68, dropping another 52.6% from the previous day.
Bed Bath & Beyond’s stock price continued to decline over the next two trading days, falling an additional 16.23% to close at $9.24 per share on August 22, 2022, and falling another 4.98% to close at $8.78 on August 23, 2022, dropping over 70% from August 17’s high price of $30 per share in five trading days after Defendants dumped their shares.
Insiders profited at least $110 million from their Insider sales from August 16 to August 17, 2022.
For more information on the Bed Bath & Beyond class action go to: https://bespc.com/cases/BBBY
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Previous results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com
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